Foreign exchange markets see euro fall further

Continued uncertainty over the debt crisis in Europe has caused the euro to fall further against major currencies.

Following the news that the Spanish central bank had taken over a regional lender, the single currency fell one per cent against the dollar.

It was also trading lower against the Japanese yen and the Great British pound.

The latest declines come after the euro hit a four-year low against the US currency, fuelled by ongoing fiscal concerns.

Commenting on the situation, Michael Hart, an analyst at Citigroup, told the Financial Times that the eurozone could be in for a tough time.

"The sovereign crisis, a worldwide regulatory crackdown, fears of an economic slowdown in emerging markets and the possibility of a 'double-dip' provide the makings of a perfect storm," he remarked.

Sterling also fell on the foreign exchange markets, losing one per cent of its value against the US dollar, Reuters reported.

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Posted by Chris Barber